On September 1, 2025, Hare Today pet-supply store Co. borrowed $2000 from Gone Tomorrow Bank, signing a 6-month, 12-percent note. Interest is to be paid at maturity. Hare Today and Gone Tomorrow both have a December 31 year-end.
Part 1: Record the journal entry for the transaction for Hare Today, the borrower, on September 1, 2025. If more than one debit or credit is needed, place them in alphabetical order based on the account names. Round final answers to the second decimal place (ie to the penny)
Date
1-Sep
Part 2: Prepare the appropriate adjusting entry, if needed, for Hare Today on December 31, 2025. If more than one debit or credit is needed, place them in alphabetical order based on the account names. Round final answers to the second decimal place (ie to the penny)
Date
31-Dec
Part 3: Record the entry at maturity to repay the note at maturity on March 1, 2026. If more than one debit or credit is needed, place them in alphabetical order based on the account names.
Date
1-Mar